Fosun Tourism Group: A High-Conviction Growth Play in the Post-Pandemic Travel Sector

The global travel and leisure sector is undergoing a transformative phase, driven by pent-up demand, shifting consumer preferences, and technological innovation. Amid this backdrop, Fosun Tourism Group (FTG) has emerged as a standout performer, delivering a remarkable 42% year-on-year profit growth in 2025. This achievement is not a one-off but a reflection of a strategic framework that combines an asset-light model, aggressive global expansion, and AI-driven operational efficiency. For investors seeking exposure to a sector poised for sustained growth, FTG's trajectory offers compelling insights.

Asset-Light Model: Scaling Profitability Without Heavy Capital Burden

FTG's asset-light strategy has been a cornerstone of its success. By leveraging partnerships and government-backed projects, the group minimizes capital outlays while maximizing scalability. A prime example is the Taicang Alps Resort Phase II, a RMB5 billion project funded by the Taicang Municipal Government and managed by FTG. This approach allows the company to focus on high-margin services—such as resort operations, customer experience, and brand management—while avoiding the risks and costs of large-scale infrastructure development.

The asset-light model also enables rapid geographic expansion. In 2025, FTG plans to open four new resorts, including the Urban Oasis Xianlin Nanjing and Kiroro Grand in Hokkaido, Japan. These projects are expected to boost annual capacity by over 20% compared to 2022, demonstrating the group's ability to scale operations efficiently. For investors, this model reduces volatility and enhances cash flow predictability, critical in a sector historically prone to cyclical downturns.

Global Expansion: Capturing Diversified Demand

FTG's global footprint is a key differentiator. Club Med, its flagship brand, reported a 35.4% year-on-year revenue increase in the Americas and a 64.6% recovery compared to 2019 levels in the EMEA region. This geographic diversification mitigates regional economic risks and taps into varying demand cycles. For instance, while European markets benefit from post-pandemic leisure travel, Asian markets like China and Japan are seeing a surge in domestic tourism, driven by the “Club Med Urban Oasis” product line.

Atlantis Sanya, another crown jewel, achieved an 86.2% occupancy rate in 2023, with revenue up 82.2% year-on-year. Its success underscores the appeal of themed, high-end resorts in markets with rising disposable incomes. By balancing international and domestic growth, FTG is well-positioned to capitalize on both global and regional trends.

AI-Driven Operational Efficiency: The New Competitive Edge

The integration of artificial intelligence (AI) into FTG's operations is redefining the luxury travel experience. The AI Lab, launched in 2024, has developed tools like the AI G.O. (Gentle Organizer), a virtual assistant that personalizes guest interactions from pre-trip planning to post-stay engagement. This AI-powered concierge reduces labor costs while enhancing customer satisfaction, a critical factor in retaining high-net-worth clients.

The GM Copilot, an AI-based booking system, has already automated 23% of customer interactions across seven global markets, cutting wait times by 75%. In 2024 alone, it handled 35,000 fully automated conversations, directly contributing to a 10% year-on-year revenue increase for Club Med. Meanwhile, the Hainan UltraMed project—a world-first AI-themed resort—uses AIGC (AI-Generated Content) for room customization and NLP-driven digital concierges, offering 24/7 personalized service. These innovations not only differentiate FTG's offerings but also create a flywheel effect: enhanced guest experiences drive repeat bookings and higher margins.

Data-Driven Validation: Profitability and Market Position

FTG's financials validate its strategic bets. In the first half of 2025, the group's business volume hit RMB9.53 billion, with adjusted net profit rising 42% year-on-year. Club Med's adjusted EBITDA surged to RMB2.29 billion, while Atlantis Sanya's operating profit grew by 11%. These figures outpace industry averages, reflecting the effectiveness of FTG's AI and asset-light strategies.

Investment Thesis: A High-Conviction Play

For investors, FTG represents a rare convergence of macro trends and operational excellence. The post-pandemic travel sector is expected to grow at a 6–8% CAGR through 2030, driven by urbanization, rising middle-class incomes, and the normalization of leisure travel. FTG's asset-light model ensures it can scale without overleveraging, while its AI initiatives create defensible moats in customer experience and efficiency.

However, risks remain. Geopolitical tensions and regulatory shifts in key markets like China could impact demand. Additionally, the AI-driven model requires continuous innovation to maintain its edge. That said, FTG's R&D investments and partnerships with tech firms suggest a commitment to staying ahead of the curve.

Conclusion: Positioning for Long-Term Growth

Fosun Tourism Group's 42% profit growth is not an anomaly but a testament to its strategic foresight. By combining an asset-light approach, global diversification, and AI-driven efficiency, the company is redefining luxury travel in the post-pandemic era. For investors with a medium-term horizon, FTG offers a compelling opportunity to participate in a sector poised for sustained growth. As the world relearns the joy of travel, FTG is not just riding the wave—it is shaping it.